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City of Chicago Property Tax Increase Alert

DALLAS, March 14, 2017 /PRNewswire/ -- Because of a heavy debt load and a state law requiring Chicago to dramatically increase its contributions to its public school pension fund, the City of Chicago recently passed a $245 million property tax increase for the 2016 (payable 2017) tax year. This is in addition to the previously passed $588 million property tax increase for fire and police pensions that is being phased-in from 2015 (payable 2016) through 2018 (payable 2019). The overall tax increase for 2016 (payable 2017) will be $354 million when including both the public school ($245 million) and fire and police ($109 million) tax increases.

Given the above and based on our research, we are estimating that the 2016 (payable 2017) tax rate in the City of Chicago will increase approximately 7.5%. This is much greater than the annual 1–3% tax rate increases typically seen in Chicago. The actual 2016 (payable 2017) tax rate will be known when the second installment tax bills are issued in July 2017. 

Please note, these property tax increases and tax rate assumptions only affect and apply to properties located in the City of Chicago. Please feel free to contact Shawn King or Mike Abbatemarco with any questions you may have.

About Ryan
Ryan is an award-winning global tax services firm, with the largest indirect and property tax practices in North America and the seventh largest corporate tax practice in the United States. With global headquarters in Dallas, Texas, the Firm provides a comprehensive range of state, local, federal, and international tax advisory and consulting services on a multi-jurisdictional basis, including audit defense, tax recovery, credits and incentives, tax process improvement and automation, tax appeals, tax compliance, and strategic planning. Ryan is a five-time recipient of the International Service Excellence Award from the Customer Service Institute of America (CSIA) for its commitment to world-class client service. Empowered by the dynamic myRyan work environment, which is widely recognized as the most innovative in the tax services industry, Ryan's multi-disciplinary team of more than 2,100 professionals and associates serves over 12,000 clients in more than 40 countries, including many of the world's most prominent Global 5000 companies. More information about Ryan can be found at ryan.com.

 

TECHNICAL INFORMATION CONTACTS:

Shawn King
Principal
Ryan
312.980.1127
shawn.king@ryan.com

Michael Abbatemarco
Director
Ryan
312.980.1145
michael.abbatemarco@ryan.com

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